Federal Register / Vol. 88, No. 245 / Friday, December 22, 2023 / Rules and Regulations 88533 

radius of the airport beginning at the 226° 

bearing clockwise to the 123° bearing, thence 

to the point of beginning, within 2 miles 

north and south of the airport’s 076° bearing 

extending to 10.2 miles east, and within 2.2 

miles north and 2.1 miles south of the 

airport’s 265° bearing extending to 7.8 miles 

west, excluding that airspace within Mexico 

and the sensitive bird nesting area south and 

east of the airport. 

* * * * * 

Issued in Fort Worth, Texas, on December 

18, 2023. 

Steven Phillips, 

Acting Manager, Operations Support Group, 

ATO Central Service Center. 

[FR Doc. 2023–28200 Filed 12–21–23; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 205 and 225 

[Docket DARS–2023–0001] 

Defense Federal Acquisition 

Regulation Supplement; Technical 

Amendments 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule; technical 

amendment. 

SUMMARY: DoD is amending the Defense 

Federal Acquisition Regulation 

Supplement (DFARS) to make needed 

editorial changes. 

DATES: Effective December 22, 2023. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Jennifer D. Johnson, Defense 

Acquisition Regulations System, 

telephone 703–717–8226. 

SUPPLEMENTARY INFORMATION: This final 

rule amends the DFARS to make needed 

editorial changes to update the 

references to the Governmentwide point 

of entry (https://www.sam.gov) at 

DFARS 205.205–70, 205.301, 225.7003– 

3 and 225.7018–4. 

List of Subjects in 48 CFR Parts 205 and 

225 

Government procurement. 

Jennifer D. Johnson, 

Editor/Publisher, Defense Acquisition 

Regulations System. 

Therefore, 48 CFR parts 205 and 225 

are amended as follows: 

■ 1. The authority citation for 48 CFR 

parts 205 and 225 continues to read as 

follows: 

Authority: 41 U.S.C. 1303 and 48 CFR 

chapter 1. 

PART 205—PUBLICIZING CONTRACT 

ACTIONS 

205.205–70 [Amended] 

■ 2. Amend section 205.205–70 in 

paragraph (a) by removing 

‘‘FedBizOpps.gov (or any successor 

site)’’ and adding ‘‘the Governmentwide 

point of entry (https://www.sam.gov)’’ in 

its place. 

205.301 [Amended] 

■ 3. Amend section 205.301 in 

paragraph (S–70)(i) by removing ‘‘GPE’’ 

and adding ‘‘Governmentwide point of 

entry (https://www.sam.gov)’’ in its 

place. 

PART 225—FOREIGN ACQUISITION 

■ 4. Amend section 225.7003–3 by 

revising paragraph (b)(5)(ii)(A)(1) to 

read as follows: 

225.7003–3 Exceptions. 

* * * * * 

(b) * * * 

(5) * * * 

(ii) * * * 

(A) * * * 

(1) Publish a notice in the 

Governmentwide point of entry (GPE) 

(https://www.sam.gov) of the intent to 

make the domestic nonavailability 

determination; and 

* * * * * 

■ 5. Amend section 225.7018–4 by 

revising paragraph (b)(1)(i) to read as 

follows: 

225.7018–4 Nonavailability determination. 

* * * * * 

(b) * * * 

(1) * * * 

(i) Publish a notice in the GPE 

(https://www.sam.gov) of the intent to 

make the nonavailability determination; 

and 

* * * * * 

[FR Doc. 2023–27940 Filed 12–21–23; 8:45 am] 

BILLING CODE 6001–FR–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 211, 212, 245, and 252 

[Docket DARS–2023–0017] 

RIN 0750–AL14 

Defense Federal Acquisition 

Regulation Supplement: Consolidation 

of DoD Government Property Clauses 

(DFARS Case 2020–D029) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is issuing a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to consolidate existing contract 

clauses for the management and 

reporting of Government property into a 

single contract clause. The final rule 

also replaces references to legacy 

software applications used for reporting 

Government property within the DoD 

enterprise-wide eBusiness platform, and 

converts existing form-based processes 

into electronic processes within that 

platform. 

DATES: Effective January 22, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Heather Kitchens, telephone 571–296– 

7152. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published a proposed rule in the 

Federal Register at 88 FR 25600 on 

April 27, 2023, to amend the DFARS to 

consolidate contract clauses related to 

management and reporting of 

Government property, update references 

to certain forms that are being 

incorporated into electronic processes, 

and update references to applications 

used to report receipt, shipment, 

transfer, or loss of Government property, 

or excess Government property. DoD 

developed the Government-Furnished 

Property (GFP) module within the 

Procurement Integrated Enterprise 

Environment (PIEE) to house the GFP 

life-cycle reporting requirements to 

provide end-to-end accountability for all 

GFP transactions within a single, secure, 

integrated system, while employing 

enhancements in technology to reduce 

burden on the public and the 

Government. The final rule creates a 

new consolidated clause at DFARS 

252.245–7005, Management and 

Reporting of Government Property, and 

removes and reserves the following 

DFARS clauses: 


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88534 Federal Register / Vol. 88, No. 245 / Friday, December 22, 2023 / Rules and Regulations 

• 252.211–7007, Reporting of 

Government-Furnished Property. 

• 252.245–7001, Tagging, Labeling, 

and Marking of Government-furnished 

Property. 

• 252.245–7002, Reporting Loss of 

Government Property. 

• 252.245–7004, Reporting, 

Reutilization, and Disposal. 

Four respondents submitted public 

comments in response to the proposed 

rule. 

II. Discussion and Analysis 

DoD reviewed the public comments in 

the development of the final rule. Public 

comments from three respondents were 

unrelated to the rule, and therefore were 

not considered in the development of 

the final rule. A discussion of the 

respondent’s comments and the changes 

made to the rule, as a result of those 

comments, is provided as follows: 

A. Summary of Significant Changes 

From the Proposed Rule 

The term ‘‘physical’’ was removed 

from the requirement to report receipt of 

GFP. The discussion of workmanship 

errors was removed from the 

requirement to report loss of property. 

The seven-day reporting requirement for 

loss was removed, thereby defaulting to 

the timeframe identified in the clause at 

Federal Acquisition Regulation (FAR) 

52.245–1, Government Property. 

Marking of GFP was clarified by stating 

it is only applicable to items being 

repaired by a contractor. Outdated 

weblinks were revised. 

B. Analysis of Public Comments 

1. Marking Government-Furnished 

Property 

Comment: The respondent questioned 

why the proposed rule creates a new 

requirement for marking equipment. 

Response: DFARS clause 252.245– 

7001 Tagging, Labeling, and Marking of 

Government-Furnished Property, 

requires contractors to mark all 

Government-furnished property that is 

identified as serially managed and has 

not been previously marked. The 

consolidated clause, DFARS 252.245– 

7005, reduces that requirement to only 

mark items that are identified as serially 

managed, where the contractor has 

access to the technical data and the 

technical data indicates a marking 

requirement. To further restrict the 

application of this requirement, the 

language has been modified to clarify 

that the marking requirement only 

applies to serially managed items being 

repaired by the contractor, where the 

contractor has access to the technical 

data and the technical data requires 

marking. DFARS clause 252.245–7001 is 

removed and reserved by this final rule. 

Comment: The respondent questioned 

why the term ‘‘technical drawings’’ does 

not include technical data in other 

media and stated that the term may be 

misinterpreted. The respondent 

expressed concern that the requirement 

could be misinterpreted as requiring 

contractors to have technical data 

packages on all GFP. 

Response: The final rule retains the 

term ‘‘technical drawing’’ in paragraph 

(d) of the new clause at DFARS 

252.245–7005. This term reflects the 

Government’s needs and is more limited 

in scope that other terms such as 

‘‘technical data’’ or ‘‘technical data 

package.’’ In addition, restricting this 

requirement to items the contractor is 

repairing eliminates the opportunity to 

misinterpret the requirement and to 

potentially apply it to a broader scope 

than intended. 

Comment: The respondent asked for 

clarification if an item has been marked 

but not registered, and if that is a new 

requirement. 

Response: As noted above, the 

requirement for marking items is an 

existing requirement. In this final rule, 

marking has been limited to repairs, 

where the technical drawing requires 

marking and registration of the item, 

and therefore has limited and specific 

applicability. 

2. Misinterpretation of DFARS PGI 

Comment: The respondent 

commented on marking contractor 

acquired property (CAP) when it is 

delivered. The comments identified that 

the statement in DFARS PGI 245.402– 

71(3)(iii) on the delivery of contractoracquired property, ‘‘Contractor-acquired 

property items shall be marked as 

required by DFARS clause 252.211– 

7003’’, was interpreted to require 

marking of CAP at delivery. 

Response: While DFARS PGI 

245.402–71(3)(iii) is not part of DFARS 

Case 2020–D029, the reference to 

DFARS clause 252.211–7003, Item 

Unique Identification and Valuation, is 

correct. DFARS clause 252.211–7003 is 

required ‘‘. . . in solicitations and 

contracts, including solicitations and 

contracts using FAR part 12 procedures 

for the acquisition of commercial 

products and commercial services, for 

supplies, and for services involving the 

furnishing of supplies. . . .’’ This 

would include where line items are 

established for the delivery of CAP. It is 

the presence of the clause 252.211–7003 

that may require the marking of CAP at 

delivery. 

Comment: The respondent inquired 

why there is no existing requirement to 

report or mark items shipped-in-place. 

Response: DFARS clause 252.211– 

7003 identifies the criteria for marking 

and requires reporting the receipt of all 

Government-furnished property. The 

clause does not provide an exception or 

exclusion for property shipped-in-place. 

If an item requires marking under the 

clause, the marking is required 

regardless of the shipping destination. 

3. Data Elements 

Comment: The respondent stated the 

rule creates a ‘‘proxy’’ National Stock 

Number where it states one of the data 

elements is ‘‘(1) National stock number 

(NSN).’’ The respondent asked if an 

NSN is not available, if it is appropriate 

to use either the combination of 

manufacturer’s CAGE code and part 

number, or model number. 

Response: DFARS 252.245–7005 

includes more specific details of the 

requirement in FAR 52.245–1 that the 

contractor’s property records contain 

‘‘The name, part number and 

description, National Stock Number (if 

needed for additional item 

identification tracking and/or 

disposition), and other data elements as 

necessary and required in accordance 

with the terms and conditions of the 

contract.’’ It is not creating a proxy but 

indicates a preference for when the 

National Stock Number is used and 

identifies the alternatives, when it is 

not. 

Comment: The respondent stated that 

sometimes serially managed assets are 

received without serial numbers, and 

therefore instructions should be 

provided that the serial number is not 

mandatory. 

Response: The requirement relates to 

the ability of the contractor’s system to 

capture data when they create records. 

The requirement is that the contractor 

records be able to record serial numbers 

for serially managed items when a 

unique item identifier (UII) is not 

present, not that a serial number is 

mandatory in all cases. 

4. Reporting Consumption of Serially 

Managed Assets 

Comment: The respondent inquired as 

to why reporting of serially managed 

assets occurs when consumed into 

higher-level components as a new 

requirement. 

Response: This is not a new 

requirement as the DFARS clause 

252.211–7007 required the reporting of 

serially managed items when they are 

‘‘Consumed or expended, reasonably 

and properly, or otherwise accounted 

for, in the performance of the contract 


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Federal Register / Vol. 88, No. 245 / Friday, December 22, 2023 / Rules and Regulations 88535 

as determined by the Government 

property administrator, including 

reasonable inventory adjustments.’’ 

DFARS clause 252.245–7005 also 

requires reporting when seriallymanaged items of GFP are incorporated 

into a higher-level component, 

assembly, or end item. 

5. Physical Receipt 

Comment: The respondent stated that 

the term ‘‘physical’’ receipt is confusing 

as receipt may be virtual for property 

transferred in place or received by a 

subcontractor on behalf of the 

contractor. 

Response: The term physical has been 

removed in the final rule. 

6. Reporting Transfer of GFP 

Comment: The respondent took 

exception to the requirement to report 

the transfer of property between 

contracts, both in the proposed rule and 

DFARS clause 252.211–7007, as the 

transfer of property between contracts 

should be done by the Government 

through modification. 

Response: FAR 45.106 and DFARS 

PGI 245.103–71 both require a contract 

modification to transfer the 

accountability of property between 

contracts. FAR 45.106 states that once 

transferred the property becomes 

Government-furnished property on the 

new contract. Just as the Government 

listing the property in the contract does 

not show receipt of the property, the 

contract modification does not reflect 

any physical or virtual updates to the 

contractor records to reflect the change 

in accountability. The contractor 

reporting of transfers at DFARS 

252.245–7005(b)(ii) shows that the 

action required by the modification 

changing accountability is complete as 

required to enable accurate 

accountability of assets. This is not a 

change from the clause 252.211–7007. 

7. Reporting Through Commercial Asset 

Visibility 

Comment: The respondent questioned 

whether there is duplication between 

the requirements of the proposed rule 

(and the DFARS clause 252.211–7007) 

with requirements to report to the 

Commercial Asset Visibility System 

(CAV). CAV is a system used by the 

Department of the Navy to track assets 

during the repair process. The 

recommendation is made that reporting 

reparables should be removed from this 

case in favor of new rulemaking. 

Response: The respondent’s 

recommendation is not accepted. CAV 

reporting covers a specific 

organization’s reporting requirements 

that include reporting not covered by 

the proposed rule and excludes 

reporting required on all Government 

property. FAR clause 52.245–1, at 

paragraphs (f)(1)(iii) and (vi), identifies 

that there will be contract specific 

reporting requirements. Including 

contract specific reporting requirements, 

however, does not eliminate DoD’s need 

for standard reporting for all GFP. DoD 

has created significant efficiencies and 

reduced the burden on contractors by 

incorporating multiple legacy tools into 

the PIEE GFP Module. This rule 

advances the process of creating 

standard Government property 

reporting, and DoD continues to reduce 

duplicative reporting where practical. 

8. Timeframe for Reporting 

Comment: The respondent inquired as 

to whether creating a standard 

timeframe for reporting is arbitrary and 

will increase the cost of compliance. 

Response: The data reported on 

Government property is used for 

numerous purposes by multiple 

functional communities including 

finance, logistics, asset managers, and 

acquisition. These stakeholders were 

involved in the drafting of the proposed 

rule. The seven-day standard represents 

a time that supports their needs for 

timely information and minimizes the 

need for contract specific reporting or 

timeframes. The establishment of a 

timeframe does not increase the volume 

of what will be reported or the time it 

takes to report each action, and 

therefore should have no impact on the 

public burden compared to the previous 

requirement. To minimize the impact on 

contractors, reporting of loss has been 

removed from the seven-day reporting 

requirement so that any action with an 

established timeframe in FAR clause 

52.245–1 will use the existing FAR 

timeframe. 

9. Reporting of Loss Can Be 

Misinterpreted 

Comment: The respondent inquired 

whether the statement ‘‘Unless 

otherwise provided for in this contract, 

this requirement applies to a loss of GFP 

that results from damage that occurs 

during work in process (e.g., 

workmanship errors)’’ will be subject to 

misinterpretation and does not consider 

long-standing industry processes. 

Response: The statement has been 

removed from the final rule to avoid the 

possibility of misinterpretation. 

10. Economic Burden of Rule 

Comment: The respondent disagreed 

with the statement that DoD does not 

expect the proposed rule to have a 

significant economic impact on a 

substantial number of small entities 

within the meaning of the Regulatory 

Flexibility Act, 5 U.S.C. 601, et seq., 

because the rule is not creating any new 

requirements for contractors. 

Response: The items identified as new 

requirements by the respondent in prior 

comments are requirements in the 

existing contract clauses. Many of those 

requirements have been simplified or 

reduced in the final rule to reduce the 

impact on contractors. The 

improvements in automation and the 

standardization of business processes in 

this rule are expected to substantially 

reduce the burden on industry. 

11. Use of Hyperlinks 

Comment: The respondent expressed 

concern for the practice of including 

hyperlinks to documents within policy. 

Response: Hyperlinks in the rule were 

reviewed for accuracy and relevance as 

follows: (1) SAM.GOV as an 

authoritative Government source; (2) the 

Procurement Integrated Enterprise 

Environment (PIEE) to provide access to 

the GFP Module, the required 

application for reporting; and (3) the 

Defense Logistics Standards Manual to 

provide ready access to supply 

condition code information. These links 

are beneficial to contractors who will 

need to execute the requirements of 

DFARS clause 252.245–7005. 

12. Request for Additional Rulemaking 

Comment: The respondent inquired if 

the Department should provide 

instruction on reporting of embedded 

items removed during repair. 

Response: Reporting of embedded 

items during repair is based on the 

requirements of the contract and the 

GFP attachment. The request for policy 

clarification will be reviewed and may 

be subject to future rulemaking. 

C. Other Changes 

The final rule adds a clarification that 

the IUID Registry is to be used for the 

purpose of verifying whether a marked 

item had been registered. 

III. Applicability to Contracts at or 

Below the Simplified Acquisition 

Threshold (SAT), for Commercial 

Products (Including Commercially 

Available Off-the-Shelf (COTS) Items), 

and for Commercial Services 

This final rule creates a new DFARS 

contract clause 252.245–7XXX, 

Management and Reporting of 

Government Property. DFARS 252.245– 

7XXX is prescribed at DFARS 

245.107(4) for use in solicitations and 

contracts containing the clause at FAR 

52.245–1, Government Property. DFARS 

252.245–7XXX is applicable to 

acquisitions at or below the SAT and to 


ddrumheller on DSK120RN23PROD with RULES1
88536 Federal Register / Vol. 88, No. 245 / Friday, December 22, 2023 / Rules and Regulations 

acquisitions of commercial products 

and commercial services, when the 

contract contains the clause at FAR 

52.245–1. For DoD, the FAR clause 

52.245–1 is required to be used in all 

purchase orders for repair, maintenance, 

overhaul, or modification of 

Government property regardless of the 

unit acquisition cost of the items to be 

repaired. These types of purchase orders 

are likely to fall under the SAT. Not 

applying this clause to contracts below 

the SAT and for the acquisition of 

commercial products, including COTS 

items, and commercial services would 

exclude contracts intended to be 

covered by this rule and undermine the 

overarching purpose of the rule. 

Consequently, DoD is applying the rule 

to contracts at or below the SAT, for the 

acquisition of commercial products 

including COTS items, and for the 

acquisition of commercial services. 

IV. Expected Impact of the Rule 

The final rule consolidates the 

requirements for Government property 

reporting from multiple DFARS contract 

clauses into a single DFARS clause, 

reflecting the move of this activity into 

a single integrated eBusiness platform. 

This change will improve the ability of 

contractors and the Government to 

access and use the data across the 

Government property life cycle. The 

technical enhancements of the PIEE GFP 

Module allow for importing data, which 

will substantially reduce the reporting 

burden on DoD contractors while 

improving the accuracy of information. 

The PIEE GFP Module further enables 

DoD to consolidate and electronically 

share data about Government property 

in the possession of contractors, thereby 

improving accountability and 

auditability. 

V. Executive Orders 12866 and 13563 

Executive Orders (E.O.s) 12866 and 

13563 direct agencies to assess all costs 

and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). E.O. 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This is not a significant 

regulatory action and, therefore, was not 

subject to review under section 6(b) of 

E.O. 12866, Regulatory Planning and 

Review, as amended. 

VI. Congressional Review Act 

As required by the Congressional 

Review Act (5 U.S.C. 801–808) before an 

interim or final rule takes effect, DoD 

will submit a copy of the interim or 

final rule with the form, Submission of 

Federal Rules under the Congressional 

Review Act, to the U.S. Senate, the U.S. 

House of Representatives, and the 

Comptroller General of the United 

States. A major rule under the 

Congressional Review Act cannot take 

effect until 60 days after it is published 

in the Federal Register. The Office of 

Information and Regulatory Affairs has 

determined that this rule is not a major 

rule as defined by 5 U.S.C. 804. 

VII. Regulatory Flexibility Act 

A final regulatory flexibility analysis 

has been prepared consistent with the 

Regulatory Flexibility Act, 5 U.S.C. 601, 

et seq., and is summarized as follows: 

DoD is amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to consolidate existing contract 

clauses for the management and 

reporting of Government property into a 

single DFARS clause, eliminate some 

form-based reporting by providing an 

electronic equivalent, and replace 

references to legacy software 

applications used for the reporting of 

Government property with updated 

language directing the Government and 

contractors to utilize the Procurement 

Integrated Enterprise Environment 

(PIEE) Government-furnished property 

(GFP) Module within the DoD 

enterprise-wide eBusiness platform. 

DoD developed the GFP module within 

the PIEE to house the GFP life-cycle 

reporting requirements, thus providing 

end-to-end accountability for all GFP 

transactions within a single, secure, 

integrated system. Use of the PIEE GFP 

Module capitalizes on technological 

enhancements and reduces burden on 

the public and the Government. 

The objective of the rule is to create 

more efficient instructions for reporting 

Government property by consolidating 

reporting requirements for Government 

property. The rule transitions 

instructions for property reporting from 

multiple stand-alone, legacy software 

applications to the PIEE GFP Module, a 

fully integrated, DoD enterprise-wide 

eBusiness platform. Use of the new 

system functionality will enable DoD to 

address numerous audit findings and 

security concerns. The legal basis for the 

rule is 41 U.S.C. 1303. 

No comments were received in 

response to the initial regulatory 

flexibility analysis. 

This rule will likely affect some small 

business concerns that are provided 

Government-furnished property in the 

performance of their contracts. Data 

generated from the Federal Procurement 

Data System for fiscal years 2019 

through 2021 indicates that, on average, 

2,022 unique small entities per year 

received awards with Government 

property that would be subject to this 

rule. 

The rule does not impose any new 

reporting, recordkeeping, or compliance 

requirements. The replacement 

application used for reporting is 

intended to maintain the status quo 

regarding the information to be reported 

and to reduce compliance requirements 

due to the technological advances in the 

PIEE GFP Module. 

There are no practical alternatives 

that would reduce burden on small 

entities and still meet the objective of 

creating efficiency by consolidating 

reporting requirements for Government 

property. 

VIII. Paperwork Reduction Act 

This rule contains information 

collection requirements that have been 

approved by the Office of Management 

and Budget under the Paperwork 

Reduction Act (44 U.S.C. chapter 35). 

This information collection requirement 

is assigned OMB Control Number 0704– 

0246, Defense Federal Acquisition 

Regulation Supplement (DFARS) part 

245, Government Property. 

List of Subjects in 48 CFR Parts 211, 

212, 245, and 252 

Government procurement. 

Jennifer D. Johnson, 

Editor/Publisher, Defense Acquisition 

Regulations System. 

Therefore, 48 CFR parts 211, 212, 245, 

and 252 are amended as follows: 

■ 1. The authority citation for 48 CFR 

parts 211, 212, 245, and 252 continues 

to read as follows: 

Authority: 41 U.S.C. 1303 and 48 CFR 

chapter 1. 

PART 211—DESCRIBING AGENCY 

NEEDS 

211.274–4 [Removed] 

■ 2. Remove section 211.274–4. 

211.274–5 and 211.274–6 [Redesignated 

as 211.274–4 and 211.274–5] 

■ 3. Redesignate sections 211.274–5 and 

211.274–6 as sections 211.274–4 and 

211.274–5, respectively. 

211.274–5 [Amended] 

■ 4. Amend the newly redesignated 

section 211.274–5 by— 


ddrumheller on DSK120RN23PROD with RULES1
Federal Register / Vol. 88, No. 245 / Friday, December 22, 2023 / Rules and Regulations 88537 

■ a. Redesignating paragraphs (a)(1), (2), 

and (3) as paragraphs (a) introductory 

text and (a)(1) and (2), respectively; 

■ b. Removing paragraph (b); and 

■ c. Redesignating paragraph (c) as 

paragraph (b). 

PART 212—ACQUISITION OF 

COMMERCIAL PRODUCTS AND 

COMMERCIAL SERVICES 

■ 5. Amend section 212.301— 

■ a. In paragraph (f)(v)(A) by removing 

‘‘211.274–6(a)(1)’’ and adding ‘‘211.274– 

5(a)’’ in its place; 

■ b. By removing paragraph (f)(v)(B); 

■ c. By redesignating paragraph (f)(v)(C) 

as paragraph (f)(v)(B); 

■ d. In the newly redesignated 

paragraph (f)(v)(B) by removing 

‘‘211.274–6(c)’’ and adding ‘‘211.274– 

5(b)’’ in its place; 

■ e. Redesignating paragraphs (f)(xix) 

and (xx) as paragraphs (f)(xx) and (xxi), 

respectively; and 

■ f. Adding a new paragraph (f)(xix). 

The addition reads as follows: 

212.301 Solicitation provisions and 

contract clauses for the acquisition of 

commercial products and commercial 

services. 

* * * * * 

(f) * * * 

(xix) Part 245—Government Property. 

Use the clause at 252.245–7005, 

Management and Reporting of 

Government Property, as prescribed in 

245.107(4). 

* * * * * 

PART 245—GOVERNMENT PROPERTY 

■ 6. Amend section 245.102— 

■ a. By revising paragraph (2); 

■ b. In the paragraph (4) heading and 

paragraphs (4)(i) and (4)(ii)(A) by 

removing ‘‘Government-furnished 

property’’ and adding ‘‘GFP’’ in their 

places, respectively; and 

■ c. By revising paragraph (5). 

The revisions read as follows: 

245.102 Policy. 

* * * * * 

(2) Government supply sources. When 

a contractor will be responsible for 

preparing requisitioning documentation 

to acquire Government-furnished 

property (GFP) from Government supply 

sources, include in the contract the 

requirement to prepare the 

documentation in accordance with DLM 

4000.25, Defense Logistics Management 

Standards (DLMS), Volume 2, Supply 

Standards and Procedures. Copies are 

available from the address cited at PGI 

251.102. 

* * * * * 

(5) Reporting Government property. It 

is DoD policy that all Government 

property be reported in the GFP module 

or Wide Area WorkFlow module of the 

Procurement Integrated Enterprise 

Environment (PIEE) as required by the 

clause at 252.245–7005, Management 

and Reporting of Government Property. 

■ 7. Revise section 245.103–72 to read 

as follows: 

245.103–72 Government-furnished 

property attachments to solicitations and 

awards. 

When performance will require the 

use of GFP, contracting officers shall 

include the GFP attachment to 

solicitations and awards. See PGI 

245.103–72 for links to the formats and 

procedures for preparing the GFP 

attachment. 

■ 8. Amend section 245.107 by— 

■ a. Removing paragraphs (3), (4), and 

(6); 

■ b. Redesignating paragraph (5) as 

paragraph (3); and 

■ c. Adding a new paragraph (4). 

The addition reads as follows: 

245.107 Contract clauses. 

* * * * * 

(4) Use the clause at 252.245–7005, 

Management and Reporting of 

Government Property, in solicitations 

and contracts, including solicitations 

and contracts using FAR part 12 

procedures for the acquisition of 

commercial products and commercial 

services, that contain the clause at FAR 

52.245–1, Government Property. 

245.201–70 [Removed] 

■ 9. Remove section 245.201–70. 

245.201–71 [Redesignated as 245.201–70] 

■ 10. Redesignate section 245.201–71 as 

245.201–70 and revise the newly 

designated section to read as follows: 

245.201–70 Security classification. 

Follow the procedures at PGI 

245.201–70 for security classification. 

■ 11. Amend section 245.604–1— 

■ a. In paragraph (1) by removing 

‘‘(formal or informal sales)’’; 

■ b. By revising the paragraph (2) 

heading; 

■ c. In paragraph (3)(ii) by removing 

‘‘252.245–7004, Reporting, 

Reutilization, and Disposal’’ and adding 

‘‘252.245–7005, Management and 

Reporting of Government Property’’ in 

its place; 

■ d. In the paragraph (4) heading and 

paragraphs (4)(i) introductory text and 

(4)(ii) by removing ‘‘Noncompetitive’’ 

and adding ‘‘Negotiated’’ in its place 

wherever it appears, and in paragraph 

(4)(iii) introductory text by removing 

‘‘noncompetitive’’ and adding 

‘‘negotiated’’ in its place; and 

■ e. In paragraph (5) by removing 

‘‘Implementation of Trade Security 

Controls’’ and adding ‘‘Implementation 

of Trade Security Controls (TSCs) for 

Transfers of DoD Personal Property to 

Parties Outside DoD Control’’ in its 

place. 

The revision reads as follows: 

245.604–1 Sales procedures. 

* * * * * 

(2) Invitation for bid procedures. 

* * * 

* * * * * 

SUBPART 245.70 [Removed and 

Reserved] 

■ 12. Remove and reserve subpart 

245.70 consisting of sections 245.7001 

and 245.7001–1 through 245.7001–6. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

252.211–7003 [Amended] 

■ 13. Amend section 252.211–7003 

introductory text by removing 

‘‘211.274–6(a)(1)’’ and adding ‘‘211.274– 

5(a)’’ in its place. 

252.211–7007 [Removed and Reserved] 

■ 14. Remove and reserve section 

252.211–7007. 

252.211–7008 [Amended] 

■ 15. Amend section 252.211–7008 

introductory text by removing 

‘‘211.274–6(c)’’ and adding ‘‘211.274– 

5(b)’’ in its place. 

252.245–7001 [Removed and Reserved] 

■ 16. Remove and reserve section 

252.245–7001. 

252.245–7002 [Removed and Reserved] 

■ 17. Remove and reserve section 

252.245–7002. 

252.245–7003 [Amended] 

■ 18. Amend section 252.245–7003 

introductory text by removing 

‘‘245.107(5)’’ and adding ‘‘245.107(3)’’ 

in its place. 

252.245–7004 [Removed and Reserved] 

■ 19. Remove and reserve section 

252.245–7004. 

■ 20. Add section 252.245–7005 to read 

as follows: 

252.245–7005 Management and Reporting 

of Government Property. 

As prescribed in 245.107(4), use the 

following clause: 

Management and Reporting of Government 

Property (Jan 2024) 

(a) Definitions. As used in this clause— 


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As is means that the Government makes no 

warranty with respect to the serviceability 

and/or suitability of the Government 

property for contract performance and that 

the Government will not pay for any repairs, 

replacement, and/or refurbishment of the 

property. 

Commercial and Government Entity 

(CAGE) code means— 

(1) An identifier assigned to entities 

located in the United States or its outlying 

areas by the Defense Logistics Agency (DLA) 

Commercial and Government Entity (CAGE) 

Branch to identify a commercial or 

government entity by unique location; or 

(2) An identifier assigned by a member of 

the North Atlantic Treaty Organization 

(NATO) or by the NATO Support and 

Procurement Agency (NSPA) to entities 

located outside the United States and its 

outlying areas that the DLA Commercial and 

Government Entity (CAGE) Branch records 

and maintains in the CAGE master file. This 

type of code is known as a NATO CAGE 

(NCAGE) code. 

Contractor-acquired property, contractor 

inventory, Government property, 

Government-furnished property, and loss of 

Government property have the meanings 

given in the Federal Acquisition Regulation 

(FAR) 52.245–1, Government Property, 

clause of this contract. 

Demilitarization means the act of 

eliminating the functional capabilities and 

inherent military design features from DoD 

personal property. Methods and degree range 

from removal and destruction of critical 

features to total destruction by cutting, 

tearing, crushing, mangling, shredding, 

melting, burning, etc. 

Export-controlled items has the meaning 

given in the Defense Federal Acquisition 

Regulation Supplement (DFARS) 252.225– 

7048, Export-Controlled Items, clause of this 

contract. 

Ineligible transferee means an individual, 

an entity, or a country— 

(1) Excluded from Federal programs by the 

General Services Administration as identified 

in the System for Award Management 

Exclusions located at https://sam.gov; 

(2) Delinquent on obligations to the U.S. 

Government under surplus sales contracts; 

(3) Designated by the Department of 

Defense as ineligible, debarred, or suspended 

from defense contracts; or 

(4) Subject to denial, debarment, or other 

sanctions under export control laws and 

related laws and regulations, and orders 

administered by the Department of State, the 

Department of Commerce, the Department of 

Homeland Security, or the Department of the 

Treasury. 

Item unique identification means a system 

of assigning, reporting, and marking DoD 

property with unique item identifiers that 

have machine-readable data elements to 

distinguish an item from all other like and 

unlike items. 

National stock number means a 13-digit 

stock number used to identify items of 

supply. It consists of a four-digit Federal 

Supply Code and a nine-digit National Item 

Identification Number. 

Reparable item means an item, typically in 

unserviceable condition, furnished to the 

contractor for maintenance, repair, 

modification, or overhaul. 

Scrap means property that has no value 

except for its basic material content. For 

purposes of demilitarization, scrap is defined 

as recyclable waste and discarded materials 

derived from items that have been rendered 

useless beyond repair, rehabilitation, or 

restoration such that the item’s original 

identity, utility, form, fit, and function have 

been destroyed. Items can be classified as 

scrap if processed by cutting, tearing, 

crushing, mangling, shredding, or melting. 

Intact or recognizable components and parts 

are not ‘‘scrap.’’ 

Serially-managed item means an item 

designated by DoD to be uniquely tracked, 

controlled, or managed in maintenance, 

repair, and/or supply systems by means of its 

serial number or unique item identifier. 

Serviceable or usable property means 

property with potential for reutilization or 

sale as is or with minor repairs or alterations. 

Supply condition code means a 

classification of materiel in terms of 

readiness for issue and use or to identify 

action underway to change the status of 

materiel. 

Unique item identifier (UII) means a set of 

data elements marked on an item that is 

globally unique and unambiguous. The term 

includes a concatenated UII or a DoD 

recognized unique identification equivalent. 

(b) Reporting Government property. (1) The 

Contractor shall use the Government 

Furnished Property (GFP) module of the 

Procurement Integrated Enterprise 

Environment (PIEE) to— 

(i) Report receipt of GFP; 

(ii) Report the transfer of GFP to another 

DoD contract; 

(iii) Report the shipment of GFP to the 

Government or to a contractor. The GFP 

module generates the electronic equivalent of 

the DD Form 1149, DD Form 1348–1, or other 

required shipping documents; 

(iv) Report when serially-managed items of 

GFP are incorporated into a higher-level 

component, assembly, or end item; 

(v) Report the loss of Government property 

in accordance with paragraph (f)(1)(vii) of the 

FAR 52.245–1 clause of this contract; 

(vi) Complete the plant clearance inventory 

schedule in accordance with paragraph (j)(2) 

of the FAR 52.245–1 clause of this contract, 

unless disposition instructions are otherwise 

included in this contract. The GFP module 

generates the electronic equivalent of the 

Standard Form (SF) 1428, Inventory Disposal 

Schedule; and 

(vii) Submit a request to buy back or to 

convert to GFP items of Contractor-acquired 

property. 

(2) Information regarding the GFP module 

is available in the GFP Module Vendor Guide 

at https://dodprocurementtoolbox.com/sitepages/gfp-resources. Users may also register 

for access to the GFP module and obtain 

training on the PIEE home page at https://

piee.eb.mil. 

(3) In complying with paragraphs (b)(1)(i) 

through (iv) of this clause, the Contractor 

shall report the updated status of the 

property to the GFP module within 7 

business days of the date the change in status 

occurs, unless otherwise specified in the 

contract. 

(4) The Contractor shall use Wide Area 

WorkFlow in accordance with DFARS 

Appendix F, Material Inspection and 

Receiving Report, to report the shipment of 

reparable items after completion of repair, 

maintenance, modification, or overhaul. 

(5) When Government property is in the 

possession of subcontractors, the Contractor 

shall ensure that reporting is accomplished 

using the data elements required in 

paragraph (c) of this clause. 

(c) Records of Government property. To 

facilitate reporting of Government property to 

the GFP module, the Contractor’s property 

records, in addition to the requirements of 

paragraph (f)(1)(iii) of the FAR 52.245–1 

clause of this contract, shall enable recording 

of the following data elements: 

(1) National stock number (NSN). If an 

NSN is not available, use either the 

combination of the manufacturer’s CAGE 

code and part number, or model number. 

(2) CAGE code on the accountable 

Government contract. 

(3) Received/sent (shipped) date. 

(4) Accountable Government contract 

number. 

(5) Serial number (for serially-managed 

items that do not have a UII); and 

(6) Supply condition code (only required 

for reporting of reparable items). For 

information on Federal supply condition 

codes, see DLM 4000.25, Defense Logistics 

Management Standards (DLMS), Volume 2, 

Supply Standards and Procedures, Appendix 

2.5 at https://www.dla.mil/HQ/ 

InformationOperations/DLMS/elibrary/ 

manuals/v2/. 

(d) Marking, reporting, and UII registration 

of GFP requirements. The Contractor— 

(1) Shall assign the UII and mark the 

reparable items identified as serially 

managed in the GFP attachment to this 

contract with an item unique identification 

(IUID) data matrix, when the technical 

drawing for the item is accessible to the 

Contractor and includes IUID data matrix 

location and marking method; 

(2) Shall report the UII either before or 

during shipment of the repaired item; 

(3) Is not required to mark items that were 

previously marked with an IUID data matrix 

and registered in accordance with DFARS 

252.211–7003, Item Unique Identification 

and Valuation; and 

(4) Shall assign a new UII, then mark and 

register the item, when the conditions of 

paragraph (d)(1) are met, if an item is found 

to be marked but not registered in the IUID 

Registry. 

(e) Disposing of Government property. (1) 

The Contractor shall complete the plant 

clearance inventory schedule using the plant 

clearance capability of the GFP module of the 

PIEE to generate an electronic equivalent of 

the SF 1428, Inventory Disposal Schedule. 

The plant clearance inventory schedule 

requires the following: 

(i) If known, the applicable Federal supply 

code (FSC) for all items, except items in 

scrap condition. 

(ii) If known, the manufacturer name for all 

aircraft components under Federal supply 

group 16 or 17 and FSCs 2620, 2810, 2915, 

2925, 2935, 2945, 2995, 4920, 5821, 5826, 

5841, 6340, and 6615. 


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(iii) The manufacturer name, make, model 

number, model year, and serial number for 

all aircraft under FSCs 1510 and 1520. 

(2) If the schedules are acceptable, the 

plant clearance officer will confirm 

acceptance in the GFP module plant 

clearance capability, which will transmit a 

notification to the Contractor. The electronic 

acceptance is equivalent to the DD Form 

1637, Notice of Acceptance of Inventory. 

(f) Demilitarization, mutilation, and 

destruction. If demilitarization, mutilation, or 

destruction of contractor inventory is 

required, the Contractor shall demilitarize, 

mutilate, or destroy contractor inventory, in 

accordance with the terms and conditions of 

the contract and consistent with Defense 

Demilitarization Manual, DoD Manual 

(DoDM) 4160.28–M, edition in effect as of the 

date of this contract. If the property is 

available for purchase, the plant clearance 

officer may authorize the purchaser to 

demilitarize, mutilate, or destroy as a 

condition of sale provided the property is not 

inherently dangerous to public health and 

safety. 

(g) Classified Contractor inventory. The 

Contractor shall dispose of classified 

contractor inventory in accordance with 

applicable security guides and regulations or 

as directed by the Contracting Officer. 

(h) Inherently dangerous Contractor 

inventory. Contractor inventory that is 

dangerous to public health or safety shall not 

be disposed of unless rendered innocuous or 

until adequate safeguards are provided. 

(i) Contractor inventory located in foreign 

countries. Consistent with contract terms and 

conditions, property disposition shall be in 

accordance with foreign and U.S. laws and 

regulations, including laws and regulations 

involving export controls, host nation 

requirements, final governing standards, and 

government-to-government agreements. The 

Contractor’s responsibility to comply with all 

applicable laws and regulations regarding 

export-controlled items exists independent 

of, and is not established or limited by, the 

information provided by this clause. 

(j) Disposal of scrap—(1) Contractor scrap 

procedures. (i) The Contractor shall include, 

within its property management procedure, a 

process for the accountability and 

management of Government-owned scrap. 

The process shall, at a minimum, provide for 

the effective and efficient disposition of 

scrap, including sales to scrap dealers, so as 

to minimize costs, maximize sales proceeds, 

and contain the necessary internal controls 

for mitigating the improper release of nonscrap property. 

(ii) The Contractor may commingle 

Government and contractor-owned scrap and 

provide routine disposal of scrap, with plant 

clearance officer concurrence, when 

determined to be effective and efficient. 

(2) Scrap warranty. The plant clearance 

officer may require the Contractor to secure 

from scrap buyers a DD Form 1639, Scrap 

Warranty. 

(k) Sale of surplus Contractor inventory— 

(1)Sales procedures. (i) The Contractor shall 

conduct sales of contractor inventory (both 

useable property and scrap) in accordance 

with the requirements of this contract and 

plant clearance officer direction. The 

Contractor shall include in its invitation for 

bids the sales terms and conditions provided 

by the plant clearance officer. 

(ii) The Contractor may conduct internetbased sales, to include use of a third party. 

(iii) If the Contractor wishes to bid on the 

sale, the Contractor or its employees shall 

submit bids to the plant clearance officer 

prior to soliciting bids from other prospective 

bidders. 

(iv) The Contractor shall solicit bids to 

obtain adequate competition. Negotiated 

sales are subject to obtaining such 

competition as is feasible under the 

circumstances of the negotiated sale. 

(v) The Contractor shall solicit bids at least 

15 calendar days before bid opening to allow 

adequate opportunity to inspect the property 

and prepare bids. 

(vi) For large sales, the Contractor may use 

summary lists of items offered as bid sheets 

with detailed descriptions attached. 

(vii) In addition to providing notice of the 

proposed sale to prospective bidders, the 

Contractor may, when the results are 

expected to justify the additional expense, 

display a notice of the proposed sale in 

appropriate public places, e.g., publish a 

sales notice on the internet, in appropriate 

trade journals or magazines, and in local 

newspapers. 

(viii) The plant clearance officer or 

designated Government representative will 

witness the bid opening. The Contractor shall 

submit the bid abstract in electronic format 

to the plant clearance officer within 2 days 

of bid opening. If the Contractor is unable to 

submit the bid abstract electronically, the 

Contractor may submit 2 copies of the 

abstract manually within 2 days of bid 

opening. The plant clearance officer will not 

approve award to any bidder who is an 

ineligible transferee. 

(2) Required terms and conditions for sales 

contracts. The Contractor shall include the 

following terms and conditions in sales 

contracts: 

(i) For sales contracts or other documents 

transferring title: 

‘‘The Purchaser certifies that the property 

covered by this contract will be used in 

[insert name of country]. In the event of 

resale or export by the Purchaser of any of 

the property, the Purchaser agrees to obtain 

the appropriate U.S. and foreign export or reexport license approval.’’ 

(ii) For sales contracts that require 

demilitarization, mutilation, or destruction of 

property: 

‘‘The following items [insert list provided 

by plant clearance officer] require 

demilitarization, mutilation, or destruction 

by the Purchaser. Additional instructions are 

provided in accordance with Defense 

Demilitarization Manual, DoDM 4160.28–M, 

edition in effect as of the date of this sales 

contract. A Government representative will 

certify and verify demilitarization of items. 

Prepare demilitarization certificates in 

accordance with DoDM 4160.28, Volume 2, 

section 4.5, DEMIL Certificate (see figure 2, 

Example DEMIL Certificate).’’ 

(iii) Removal and title transfer: 

‘‘Property requiring demilitarization shall 

not be removed, and title shall not pass to the 

Purchaser, until demilitarization has been 

accomplished and verified by a Government 

representative.’’ 

(iv) Assumption of cost incident to 

demilitarization: 

‘‘The Purchaser agrees to assume all costs 

incident to the demilitarization and to restore 

the working area to its present condition after 

removing the demilitarized property.’’ 

(v) Failure to demilitarize: 

‘‘If the Purchaser fails to demilitarize, 

mutilate, or destroy the property as specified 

in the sales contract, the Contractor may, 

upon giving 10 days written notice to the 

Purchaser— 

(A) Repossess, demilitarize, and return the 

property to the Purchaser, in which case the 

Purchaser hereby agrees to pay to the 

Contractor, prior to the return of the 

property, all costs incurred by the Contractor 

in repossessing, demilitarizing, and returning 

the property; 

(B) Repossess, demilitarize, and resell the 

property, and charge the defaulting Purchaser 

with all costs incurred by the Contractor. The 

Contractor shall deduct these costs from the 

purchase price and refund the balance of the 

purchase price, if any, to the Purchaser. In 

the event the costs exceed the purchase price, 

the defaulting Purchaser hereby agrees to pay 

these costs to the Contractor; or 

(C) Repossess and resell the property under 

similar terms and conditions, and charge the 

defaulting Purchaser with all costs incurred 

by the Contractor. The Contractor shall 

deduct these costs from the original purchase 

price and refund the balance of the purchase 

price, if any, to the defaulting Purchaser. 

Should the excess costs to the Contractor 

exceed the purchase price, the defaulting 

Purchaser hereby agrees to pay these costs to 

the Contractor.’’ 

(l) Restrictions on purchase or retention of 

Contractor inventory. The Contractor may not 

knowingly sell the inventory to any person 

or that person’s agent, employee, or 

household member if that person— 

(1) Is a civilian employee of DoD or the 

U.S. Coast Guard; 

(2) Is a member of the Armed Forces of the 

United States, including the U.S. Coast 

Guard; or 

(3) Has any functional or supervisory 

responsibilities for or within DoD’s property 

disposal, disposition, or plant clearance 

programs or for the disposal of contractor 

inventory. 

(m) Proceeds from sales of surplus 

property. Unless otherwise provided in the 

contract, the proceeds of any sale, purchase, 

or retention shall be— 

(1) Forwarded to the Contracting Officer; 

(2) Credited to the Government as part of 

the settlement agreement pursuant to the 

termination of the contract; 

(3) Credited to the price or cost of the 

contract; or 

(4) Applied as otherwise directed by the 

Contracting Officer. 

(End of clause) 

[FR Doc. 2023–27939 Filed 12–21–23; 8:45 am] 

BILLING CODE 6001–FR–P 


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